Employment, income and council tax during the COVID-19 crisis

A geographical analysis and implications for councils

Institute for Fiscal Studies - February 2021

The COVID-19 crisis has hit employment and incomes across the UK, which in turn has affected some households' ability to pay major bills such as council tax. As a result, councils expect to collect £1.3 billion less council tax in 2020–21 than they forecast before the COVID-19 crisis. The government has agreed to cover just 75% of this shortfall.

Drawing on data from tax and benefit records, household and business surveys and the Money Dashboard app, this IFS report shows that these impacts have been uneven geographically.

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